Category Archives: Release Agreements

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California Legislature Amends Section 1542: Are Employer Settlement Agreements Now More Vulnerable to Attack?

On January 1, 2019, California’s Senate Bill No. 1431 went into effect, making a slight, but potentially significant amendment to Civil Code Section 1542. The prior version of the statute read: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at … Continue Reading

California Court Of Appeal Refuses To Enforce Non-Compete Against Selling Shareholder

The California Court of Appeal for the Fourth District recently refused to enforce a covenant not to compete against the former employee and selling shareholder of a video game company. In Fillpoint, LLC, v. Maas et al., Case No. G045057, 2012 Cal. App. LEXIS 914 (Cal. Ct. App. Aug. 24, 2012), the Court of Appeal … Continue Reading

California Supreme Court Disapproves “Narrow Restraint” Exception For Covenants Not To Compete; Holds General Waivers Should Not Be Interpreted To Waive Non-Waivable Rights

In Edwards v. Arthur Andersen LLP, the California Supreme Court reaffirmed California’s strong public policy against covenants not to compete.  The primary issue in the case was whether the Ninth Circuit’s "narrow restraint" exception was a proper interpretation of California law.  Under the narrow restraint exception, employers could enforce non-competition agreements that did not "entirely … Continue Reading

Waiver and Release Agreements Pertaining to Age Discrimination Claims Must Carefully Comply with the Older Workers Benefit Protection Act.

Every day employers terminate employees and pay significant sums to departing workers in exchange for a release of claims.  Such agreements can give employers a measure of comfort and certainty while at the same time offering departing employees value and simplicity.  However, when a departing employee is 40 years of age or older, and release … Continue Reading
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